Korea Investment Securities said on Tuesday it launched its third integrated management account (IMA) product, the Korea Investment IMA S3, and will take subscriptions from Feb. 12 to Feb. 24.

An IMA is a principal-payment obligation performance-dividend product in which a securities firm pools client deposits, invests them in corporate finance assets and other holdings, and distributes results based on investment performance.

The Korea Investment IMA S3 is designed as a closed-end structure with a two-year maturity. The offering size is about 300 billion won. The minimum subscription amount is 1 million won.

Korea Investment Securities said it has raised about 1.8 trillion won through two product offerings since it was designated as the country's first IMA operator in December last year.

The new product will also be managed mainly with corporate finance assets that have relatively low volatility, including domestic acquisition finance and corporate loans. Based on its investment banking capabilities, it prioritises stable management of principal while seeking returns above market interest rates.

A Korea Investment Securities official said the recent inflow of funds into IMA products shows that clients view IMAs as a credible investment tool that can be used for mid- to long-term asset management. The official said the firm will gradually expand its product lineup by diversifying maturity structures and portfolio composition and reflecting market demand and the investment environment.